MY Morning Wrap | S P Setia Records Impressive 39.46% YoY Growth in Q1 Net Profit

The $Dow Jones Industrial Average (.DJI.US)$ burst through 40k for the first time on Thursday, despite the market closing lower with 7,000 decliners compared to 5,900 advancing equities. The $S&P 500 Index (.SPX.US)$ fell 0.21% after hitting an all-time high close on Wednesday and a new record on Thursday morning at 5,325.46, while the $Nasdaq Composite Index (.IXIC.US)$ fell 0.26% despite hitting an all-time intraday high at 18,797.83.

$SPSETIA (8664.MY)$: S P Setia Bhd has reported a 39.46% year-on-year increase in net profit for Q1 2024, driven by higher revenue from its domestic business and operations in Vietnam. Net profit rose to RM77.33 million from RM55.45 million in Q1 2023, with revenue climbing almost 53% to RM1.48 billion. Earnings per share rose to 0.56 sen from 0.36 sen. The group’s property development segment saw a profit before tax of RM180.8 million, up 38.6% YoY due to higher contribution from its Eco Xuan development project in Vietnam, supported by land bank management and higher contribution from domestic property development.

$HUPSENG (5024.MY)$: Hup Seng Industries Bhd has reported a 44.6% year-on-year increase in net profit for Q1 2024, driven by higher sales and lower material input costs. Net profit rose to RM13.97 million from RM9.65 million a year earlier, marking the group's best quarterly net profit since 4QFY2017. Revenue for 1QFY2024 was up 8% to RM93.57 million, from RM86.38 million in 1QFY2023. Hup Seng Industries has now seen four consecutive quarters of earnings growth, exceeding its preceding quarter's net profit of RM13.7 million.

$SEG (9792.MY)$: SEG International Bhd (SEGi) has reported a 22.38% year-on-year drop in net profit for Q1 2024, primarily due to higher acquisition cost for students at the time of enrollment. Net profit fell to RM3.57 million from RM4.6 million a year ago, while earnings per share for 1QFY2024 fell to 0.29 sen from 0.38 sen for 1QFY2023. Revenue increased 8% YoY to RM49.67 million from RM45.99 million, driven by an increase in new enrollments. However, compared to 4QFY2023, net profit nearly quadrupled from RM896,000, while revenue rose 13.6% from RM43.74 million.

$HLIND (3301.MY)$: Hong Leong Industries Bhd (HLI) has reported a 51% year-on-year increase in net profit for Q3 2024, thanks to a RM25 million insurance compensation it received for the disruption caused by floods in its motorcycle business during the third quarter of FY2022. Net profit increased to RM99.43 million versus RM65.91 million a year earlier, while revenue for the quarter fell 17.9% to RM758.03 million from RM923.35 million in 3QFY2023, due to lower motorcycle sales. The group declared a second interim single tier dividend of 37 sen per share for the quarter under review, bringing the year-to-date dividend to RM1.07 per share. This exceeds the total dividend of 57 sen paid for the full financial year ended June 30, 2023 (FY2023) and 52 sen paid for FY2022.

$PANSAR (8419.MY)$: Pansar Bhd has secured a RM30.1 million contract for facilities management and maintenance of the Borneo Cultures Museum and annex building at the Sarawak Museum Complex in Kuching. The project, awarded by the state Public Works Department, involves civil, structural, and architectural services, as well as mechanical, electrical, landscape, and housekeeping services. Pansar said the project will run for 39 months from May 27 and is expected to contribute positively to the group's earnings. This marks Pansar's third contractor project award in 2024, with a total value of RM429.20 million, all located in Sarawak.

$KAWAN (7216.MY)$: Kawan Food Bhd has reported a 17.1% year-on-year increase in net profit for Q1 2024, in line with higher revenue. Net profit rose to RM9.22 million from RM7.88 million in the same quarter last year, while quarterly revenue improved 9.4% to RM80.64 million from RM73.70 million a year ago, mainly contributed by the local market and rising demand in the North American market. Earnings per share went up to 2.54 sen from 2.17 sen in 1QFY2023. On a quarterly basis, the group's net profit came in 4.1% higher than the RM8.86 million it logged in the immediate preceding quarter (4QFY2023), while revenue increased by 5.8% from RM76.2 million.

$MPI (3867.MY)$: Malaysian Pacific Industries Bhd has posted a net profit of RM32.76 million for Q3 2024, in contrast to a net loss of RM17.83 million a year ago, thanks to higher revenue and better foreign exchange rates. Earnings per share stood at 16.47 sen, against a loss per share of 8.97 sen for 3QFY2023. Quarterly revenue grew 11.5% to RM526.06 million from RM471.86 million last year, driven by higher revenues from its Asia, US and Europe segments. MPI declared a second interim dividend of 25 sen per share, bringing the total dividends for FY2024 so far to 35 sen. Despite the improved results, MPI expects the semiconductor industry to stay volatile and uncertain in the near future, despite a gradual recovery in certain segments.

$TGUAN (7034.MY)$: Thong Guan Industries Bhd is partnering with the Kedah State Development Corporation (PKNK) to jointly develop 221 units of shop and office lots with an estimated gross development value (GDV) of RM200 million. The project will be developed on a 20-acre land, the group said, without specifying the location of the plot. Thong Guan said that the project aligns with its strategic planning to diversify into property development and grow a new income source. Under the joint venture, Thong Guan is obligated to pay a guaranteed minimum sum of RM19.75 million, including cash payments of RM15 million in six instalments. PKNK is entitled to six completed commercial units valued at no less than RM4.75 million. Apart from PKNK's entitlement, Thong Guan retains all proceeds from the project, including unsold units, with no further claims from the agency.

$PERTAMA (8532.MY)$: Pertama Digital Bhd, which runs the digital court bail payment system e-Jamin, is in discussions with the relevant authorities to allow the company to continue operating the system. The company received a "directive letter" from the Office of the Chief Registrar of the Federal Court of Malaysia, requiring it to transfer all e-Jamin funds and accrued interest to the main receiving account of the Prime Minister's Department and cease operations of the e-Jamin system from May 19 onwards. Pertama's subsidiary, Dapat Vista, is currently "working towards obtaining the approval from the relevant regulatory authorities to continue providing services via e-Jamin moving forward".